How much should I be paying for insurance?

[tmartin]

I incorporated my business in March 2020 and am buying my first tow truck and I keep seeing online that people are paying around $4000/year for insurance on a tow truck but the only quote I've been able to get is $9200/year from progressive for $500,000 accident/250,000 person/100,000 property.

 

Is this what I should expect as a new company? One of the insurance agents I spoke to said that 9200 is a great quote and I should take it as he doesn't ever see less, especially as a new company.

 

I appreciate any advice you guys may have!

[doingitall]

Depends ... So Progressive is going to be expensive, but may be one of only a few options for a new company with no history, in fact in some places they may be your only option. Reality is $4000/year for decent insurance is pretty amazing. 

With no company history, that isn't going to happen. There are very few companies that write towing insurance so there are not a lot of choices, and most of them are pretty selective who they will write a policy for. Progressive knows that, and so when you are talking to them, they know you do not have many options. I do not know if $9200 is a good rate though, that depends on where you are located, what type of work you intend to offer, what type of equipment and how many pieces of equipment you are going to have, and your diving history and your credit rating. I would talk with an agent that specializes in insuring towing companies. Most local agents, and the online portals will not be your best choices. I am lucky enough to have a relatively local agent/company that specializes in towing companies, and they got me a pretty good rate this year with Nationwide, but it came with some issues since Nationwide is somewhat new to providing this specialized insurance - rant for another day - but Nationwide is an option. So is Pioneer Specialty Insurance (was part of Western National Insurance), they are the company I switched from. Again, a specialty agent is where you need to start. Though I do not use him currently, Skip Bargielski (on this board) is a great place to start ... towagents.com.

[tmartin]

1 hour ago, doingitall said:

Depends ... So Progressive is going to be expensive, but may be one of only a few options for a new company with no history, in fact in some places they may be your only option. Reality is $4000/year for decent insurance is pretty amazing. 

With no company history, that isn't going to happen. There are very few companies that write towing insurance so there are not a lot of choices, and most of them are pretty selective who they will write a policy for. Progressive knows that, and so when you are talking to them, they know you do not have many options. I do not know if $9200 is a good rate though, that depends on where you are located, what type of work you intend to offer, what type of equipment and how many pieces of equipment you are going to have, and your diving history and your credit rating. I would talk with an agent that specializes in insuring towing companies. Most local agents, and the online portals will not be your best choices. I am lucky enough to have a relatively local agent/company that specializes in towing companies, and they got me a pretty good rate this year with Nationwide, but it came with some issues since Nationwide is somewhat new to providing this specialized insurance - rant for another day - but Nationwide is an option. So is Pioneer Specialty Insurance (was part of Western National Insurance), they are the company I switched from. Again, a specialty agent is where you need to start. Though I do not use him currently, Skip Bargielski (on this board) is a great place to start ... towagents.com.

Thank you for the advice. I have talked to a few specialized agents now and Progressive's rate is the best I have been able to get so far actually. Seems like it may be the best I can get. 

[Knighthawk Towing]

try Berkshire Hathaway I pay right around 5300 per year

 

[tmartin]

17 hours ago, Knighthawk Towing said:

try Berkshire Hathaway I pay right around 5300 per year

 

Okay will do! Thanks

[tmartin]

On 4/24/2021 at 5:04 AM, Knighthawk Towing said:

try Berkshire Hathaway I pay right around 5300 per year

 

Which Berkshire Hathaway company do you use? Turns out Berkshire owns a lot of insurance companies.. I tried THREE by Berkshire but they only sell in bundles (General Liability, Auto Insurance, Property, and Workers Comp must be bought together) and they have high minimums for coverage.